Just read both of them (re-read, in the case of Sherman's post).
I don't disagree with everything that Tom says, but neither do I agree with all of it. I think I'll leave it at that.
The article that Sherman links to doesn't actually deal with the problem of redeeming the existing Treasury securities. As such, it is (IMO) a flawed solution.
I believe that your summary of the situation is essentially correct, although I've forgotten whether Social Security is "on-budget" or "off-budget". It doesn't really matter, save for the stated amount of the deficit. The excess FICA taxes go to reduce the amount of outside borrowing that the Federal government needs to do. The "assets" in the SSTF are Treasury securities that must someday be converted back into dollars with which benefits can be paid. It would be wrong to underestimate the possible difficulty in doing that.
no subject
I don't disagree with everything that Tom says, but neither do I agree with all of it. I think I'll leave it at that.
The article that Sherman links to doesn't actually deal with the problem of redeeming the existing Treasury securities. As such, it is (IMO) a flawed solution.
I believe that your summary of the situation is essentially correct, although I've forgotten whether Social Security is "on-budget" or "off-budget". It doesn't really matter, save for the stated amount of the deficit. The excess FICA taxes go to reduce the amount of outside borrowing that the Federal government needs to do. The "assets" in the SSTF are Treasury securities that must someday be converted back into dollars with which benefits can be paid. It would be wrong to underestimate the possible difficulty in doing that.